More than $106 million in home loans collapsed in Palm Beach, Martin and St. Lucie counties in the first quarter of this year alone, according to a Palm Beach Post analysis of data collected by RealeSTAT.com, a local commercial firm that gathers foreclosure and default records. A little more than $68 million in mortgages defaulted in the first quarter of 2005. In terms of real people, that translates to about 2,100 families in danger of losing their homes.

As the state’s red-hot real estate market grew hotter, thousands of new brokers and brokerages obtained licenses to operate in Florida. That coincided with the availability of new types of loans, which gave far too many middle-income buyers who couldn’t afford it a shot at living in a half million-dollar home. “Feeding frenzy,” sums up Fred Glick, managing member of U.S. Loans Mortgage LLC, a Chicago-based mortgage broker doing business in Florida and other states. Yet, some of the loans offered were never intended for the middle class. “I think the reason we are going to see so many foreclosures, so many more than we have ever had in the past, is because a broker or loan originator has gotten people into these crazy kinds of loans,” said Steven Schneider, president of the Florida Association of Mortgage Brokers.

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